Coinbase Drops 26% in October as Q3 Revenue Miss and Binance Hack Hammer COIN

Coinbase Global closed October at $138.07, down 26% from its September 30 close of $186.41, after a weaker-than-expected third quarter and a $6.3 billion hack at rival Binance rattled sentiment across crypto equities. The company reported Q3 revenue of $1.22 billion, missing estimates by $10 million, though GAAP earnings per share of $2.51 beat expectations by $2.61, and net income reached $719 million.

Transaction revenue came in at $590 million as total crypto trading volume fell to $1.21 trillion from $1.30 trillion in Q2. Prediction market revenues partly offset the decline, surging past $200 million on an annualized basis. Adjusted EBITDA rose to approximately $333 million from roughly $208 million the prior quarter, on adjusted expenses of $975 million, though the EBITDA margin stood at 11.6% and return on equity was negative 7.8%.

The Binance breach compounded selling pressure on the day of the report, sending COIN as low as $142.50 intraday, down roughly 12.5%, alongside Strategy falling nearly 12%, Robinhood dropping 10%, and Circle sliding 9%. Binance said it would cover all losses, but crypto stocks showed little relief. At least seven Wall Street firms cut their price targets on Coinbase, with Barclays moving to $120 from $149, Wells Fargo to $174 from $200, Canaccord to $275 from $300, Needham to $197 from $205, Compass Point to $165 from $187, Jefferies to $174 from $183, and Mizuho setting a new target of $145.

Adding to the overhang, CEO Brian Armstrong and two other executives filed plans to sell up to 13.6 million COIN shares worth approximately $2.2 billion. Coinbase is also joining the RLUSD stablecoin rollout, which analysts noted could support its institutional custody business. The Binance incident, meanwhile, has been flagged as a potential opportunity for Coinbase to attract investors seeking a more regulated and secure platform.